Lawmakers Urge AMCON to Recover N5 Trillion Outstanding Debts

James Emejo in Abuja

The chairman of House of Representatives Committee on Banking and Ancillary Institutions, Hon. Eze Nwachukwu Eze, has urged the Asset Management Corporation of Nigeria (AMCON) to do more and be aggressive in the recovery of about N5 trillion outstanding debts owed the corporation.
Eze also renewed the committee’s campaign for all agencies of the federal government should join AMCON’s debt recovery drive.
Speaking during a retreat with the theme, “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” in Enugu, at the weekend, Eze stated that the recovery would enhance government’s fiscal position and boost the delivery of the Renewed Hope Agenda, which President Bola Tinubu promised Nigerians.

The committee chairman urged Managing Director/Chief Executive of AMCON, Mr.
Mr Gbenga Alade, to be more proactive “in the recovery strategy, which should not allow a few obligors get away with the commonwealth of all Nigerians”.
In a statement by Head, Corporate Communications Department, AMCON, Mr. Jude Nwauzor, the House committee chairman further charged the corporation not to be deterred by the personality or position of any obligor when enforcing the debt recovery mandate.
Eze said, “The new AMCON management has to face the reality of debt recovery, which is not easy, and must not consider social status of obligors in carrying out enforcement actions.

“In fact, even if you find my name on the list of AMCON obligors, please, come after me. The success of AMCON’s mandate is not the responsibility of one institution alone; it requires the concerted efforts of all stakeholders.
“This includes the government, financial institutions, the regulatory bodies, security agencies, and, indeed, the private sector.”
He added, “We recognise that the economic landscape is evolving rapidly. Global and domestic challenges require us to reassess our strategies and adapt to new realities.

“Retreats such as this presents us with another opportunity to reflect on AMCON’s journey so far, to identify areas where we can enhance its capacity, and to align our efforts towards ensuring that the corporation continues to be a key player in our nation’s economic stability.”
Eze, who described the theme of the retreat as not only timely, but also important, stated that the task of managing distressed assets was complex, requiring robust policies, innovative approaches, and unwavering legislative backing.

He said the task meant “more than just improving existing processes; it involves a rethinking of the entire framework within which AMCON operates. It calls for strategic adjustments that will enable AMCON to be more proactive, agile, and effective in its interventions.
“In this regard, the Committee on Banking and Other Ancillary Institutions is committed to working closely with AMCON and other stakeholders to ensure that our policy framework supports the corporation’s objectives.
“We must also consider the broader economic implications of these policies, ensuring that they contribute to sustainable growth and development.”
According to Eze, “As lawmakers, it is our responsibility to provide the legal infrastructure that enables AMCON to fulfil its mandate effectively.
“This includes reviewing existing laws, proposing new legislative measures, and ensuring that AMCON has the necessary tools to navigate the complexities of asset management.”

Earlier, Alade urged the committee to continue to support the corporation, stating that as the economy tightens up, the assignment of debt recovery has also become more difficult.
Represented by AMCON Executive Director, Operations, Mr. Lucky Adaghe, Alade said, “The Nigerian economic landscape presents a complex web of challenges for debt recovery, as the country grapples with high inflation, and currency fluctuations.
“The current economic reforms, such as the removal of fuel subsidy, foreign currency exchange unification etc. aimed at diversifying the economy and promoting growth are expected to positively impact debt recovery.
“Initiatives such as the National Development Plan 2021 – 2025, the Economic Recovery and Growth Pan (ERGP), and the Central Bank of Nigeria’s measures to strengthen the banking sector and enhance credit facilities, should improve business operations and increase revenue generation.”

He stated that reforms will lead to increased employment opportunities, improved infrastructure and a more stable macroeconomic environment, ultimately enhancing debtors’ ability to repay their obligations.

According to him, “Even though the AMCON Act has gone through three amendments over the years, the obligors have mastered the operations of AMCON and have been taking advantage of the court processes to frustrate AMCON.

“Despite the efforts made by this esteemed committee in the amendment of the Act to aid our recoveries, some of the amendments are yet to be fully implemented due to some bureaucracy in government.”

He said, “AMCON obligors hide under legal technicalities to tie AMCON in courts, exploring the loopholes in the statutes and the legal system. It is important to mention at this stage that the seed sowed by the past committees has yielded the much-needed fruit now awaiting a sickle to harvest the fruits and this will come by way of the support of this committee to among others – designating specific AMCON judges in the Federal High Court complexes across the country; accelerated hearing and granting of judgement on AMCON matters within 90 days; AMCON courts to sit at least three days in a week, and the provision of issuing bench warrants for recalcitrant and evasive obligors.”

He solicited the support of the committee members in engagement with the judiciary through the relevant standing committees of the National Assembly on judiciary towards full activation of the special provisions of AMCON Act, as amended.